HSBC Research lowers Tapas target price to 3.3 Hong Kong dollars, lowers profit forecast

HSBC Global Research released a report on August 14th, saying that TAOBO (06110.HK) 's total retail goods transaction volume (GMV) for the first quarter of the 2025 fiscal year fell by a single digit year-on-year, below its yükseliş target. The bank believes that the year-on-year decline in retail GMV for TAOBO’s 2025 fiscal second quarter may further expand, and the weakness in offline traffic will continue for the rest of this year. Therefore, the bank has lowered TAOBO’s 2025 fiscal year revenue forecast by 10%, a 5% decrease from the same period last year; the net profit forecast is reduced by 13.7%, a 9.6% decrease from the same period last year. The bank also lowered the net profit forecast for TAOBO from 7.1% to 1.7% for the fiscal years 2025 to 2027; the forecasted average compound yükseliş rate for income was lowered from 5.2% to 2.5%. Based on the downward revision of TAOBO’s profit forecast and its relatively high weighted average cost of capital, HSBC lowered TAOBO’s target price from 5.6 Hong Kong dollars to 3.3 Hong Kong dollars, maintaining a hold rating.